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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

 

  10. Commitments and Contingencies

 

We may be involved in certain legal proceedings that arise from time to time in the ordinary course of our business. Except for income tax contingencies, we record accruals for contingencies to the extent that our management concludes that the occurrence is probable and that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. There is no current or pending litigation of any significance with the exception of the matters that have arisen under, and are being handled in, the normal course of business.

 

On June 19, 2025, the Company entered into a Distributor Agreement with VIPS Petroleum (“VIPS”) appointing VIPS as the exclusive distributor of the Company’s AOT product in Malaysia, Ghana, India and certain additional territories. On September 3, 2025, the Company executed an amendment to the Distributor Agreement which provides in Amendment No. 3 thereof for the potential issuance of a warrant to purchase up to 25,000,000 restricted shares of the Company’s common stock at $0.07 per share upon qualifying sales of AOT Units to VIPS. As of September 30, 2025, the required sales had not occurred, no warrant had been issued, and no accounting recognition is reflected in the financial statements. The Company will evaluate the warrant classification if issuance occurs.